A national survey shows people in Saskatchewan and Manitoba are bracing for economic uncertainty. However, many have been preparing for the impact, which may mitigate the worst effects in our provinces.
“Residents are nervous about the future because we don’t know,” said Michelle Scheller, a licensed Insolvency Trustee with MNP in Saskatoon.
A quarterly survey by MNP’s Consumer Debt Index shows people in our province and Manitoba anticipate negative effects from economic uncertainty.
“It’s stressful [when you] start having to miss payments or picking and choosing what you’re going to pay next or shortchange yourself. We’ve heard people that can’t afford their prescriptions,” Scheller told CTV News.
The survey of 2,000 people across the country shows that 4 in 10 people are dangerously close to insolvency, meaning they cannot pay their debts.
“People are scared, they’re not able in to manage their debt load. There’s a large percentage that regret taking on the amount of debt they did,” Scheller said.
The survey shows that 63 per cent of respondents said they have cut back on spending due to uncertainty with 66 per cent stated they’re delaying major purchases on investment.
Some people in Saskatoon shared similar concerns.
“I totaled off my van in January and have been looking for a used vehicle. The insurance didn’t even cover the loan because vehicle prices are so expensive. Used vehicles are more expensive than new ones,” Shauna Fauvelle said.
The survey also shows that many have prioritized purchases over the past few months and cut out non-essential items like dining out and entertainment.
“The survey indicated that our province has one of the most positive outlooks on their financial situation,” Scheller said.
The housing situation is another precarious area for residents, the survey revealed.
About 43 per cent of Saskatchewan and Manitoba residents said they’re bracing for an increase in housing costs within the next year.
“Houses are obviously really expensive. I’m moving into a one-bedroom place on May 1st. It’s just a hard struggle right now,” Alex Farn told CTV News.
Many are bracing for mortgage rate increases as renewals approach, compounded by the upcoming election.
Despite uncertainty, many remain hopeful.
“I hope everything turns around, and prices get cheaper,” Farn said.
“I’m hoping that we can lower price of vehicles and the cost of living,” Fauvelle said.
Scheller with MNP advises everyone to see a financial advisor as soon as possible to get on the right financial path sooner than later.
